AT&T discloses further clarifications and key facts to the proposed acquisition of DIRECTV (DTV); expects cost synergies to exceed $1.6 bln (35.20 -0.24) Co provides updated information regarding further clarifications and key facts to the proposed acquisition of DIRECTV: • AT&T expects cost synergies to exceed $1.6 billion annual run-rate by three years after closing. These savings will begin in the first year after closing, ramp up over four years and grow with the addition of video subscribers thereafter. It is anticipated that at least 40% of these total synergies will be realized by year two after closing. • This transaction is a clear combination of complementary assets and capabilities that creates a strong consumer bundle which will also drive improvements in customer retention. • The Company expects significant revenue-related synergies that are not currently factored in the $1.6 billion cost synergies. These revenue opportunities are in the areas of bundling, video content to multiple screens, cross selling and advertising. • Also, AT&T will be able to use its 2,000 plus company owned stores and the approximate 10,000 retail locations of the combined companies' authorized agents to sell these new bundled services. Currently, about 50% of AT&T retail stores do not sell a pay TV product. • Given our limited competitive overlap, and the significant consumer benefits, we are confident that the regulators will approve this combination.